Disclosure of delayed confidential information concerning the Bank's capital situation

Getin Noble Bank S.A. (the “Bank”), pursuant to Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (“MAR”), makes publicly available the confidential information for which the Bank’s Management Board has made a decision to delay its disclosure to the public pursuant to Article 17(5) of the MAR (“Delayed Confidential Information”) and therefore, it submitted relevant requests to the Polish Financial Supervision Authority (the “Authority”) for consent to the delays in question, pursuant to Article 17(5)(d) of the MAR. The Commission issued the relevant consent on 22 March 2022.
Below, the Bank publishes the Delayed Confidential Information as at 3 January 2022, 10 and 18 February 2022, i.e. in accordance with the Bank’s knowledge at that time and the state of the facts on the date of the decision on its identification and delay.

“Getin Noble Bank Spółka Akcyjna (the “Bank”) hereby publicly discloses the contents of confidential Information relating to:

1.    breach, as at 1 January 2022, of the Common Equity Tier I ratio referred to in Article 92(1)(a) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (the “CRR”), the value of which, according to the Bank's estimates as at 1 January 2022, was: 4.2%, i.e., approx. 0.3 p.p. below the level required by law in the amount of 4.5%, and

2.    breach as at 1 January 2022 of the leverage ratio referred to in Article 92(1)(d) of the CRR, the value of which according to the Bank's estimates as at 1 January 2022 was: 2.74%, i.e., approx. 0.26 p.p. below the level required by law in the amount of 3%,
occurring due to the need to include additional own funds charges in the calculation of capital ratios as at the indicated date resulting from:

• another tranche of amortisation of the impact of the implementation of IFRS 9 in January this year, amounting to PLN 277 million,
• changes in the amortisation rate of the negative valuation of the securities portfolio on the reduction of own funds recognized under the item “revaluation capital” from 70% to 40% – the increase in the own funds charge on this account was estimated on the basis of current valuations at approx. PLN 70 million – (pursuant to Article 468 of the CRR),

and the occurrence of external factors, independent of the Bank's operating activities, which negatively affect the Bank's capital situation and which had a dominant share in the decrease in CET 1 in Q4 2021 from 5.9% to 5.7% (preliminary data as at 31 December 2021), i.e.:

• further deterioration of valuations of securities held in the Bank's portfolio, mainly due to interest rate increases introduced by the Monetary Policy Council in Q4 2021, and
• a significant increase in the Swiss franc exchange rate against the Polish zloty (beginning in the second half of 2021), translating into an increase in the valuation of some risk-weighted assets held by the Bank.

3.    occurrence of the prerequisite for the risk of the Bank's bankruptcy referred to in Article 101(3) of the Act on the Bank Guarantee Fund, the deposit guarantee scheme and compulsory restructuring and notifying the Polish Financial Supervision Authority thereof pursuant to Article 157(f)(3) of the Banking Law, to which the events referred to in items 1 and 2 contributed.

Legal basis: Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (MAR)”.

In addition to the above, the Bank informs that apart from the occurrence of the indicated Delayed Confidential Information, other factors contributed to the level of the Common Equity Tier I capital ratio and the leverage ratio as at 1 January 2022, including the provision notified by the Bank in its current report No 9/2022 of 29 April 2022.

According to the data held by the Bank as at the date of publication of this report, i.e. as at 31 March 2022, the Common Equity Tier I ratio is 0.14% (on a standalone basis) and 0.51% (on a consolidated basis), while the leverage ratio is 0.09% (on a standalone basis) and 0.34% (on a consolidated basis).

The Bank indicates that regardless of the identified Delayed Confidential information, it maintains full operational continuity, and all key processes and functions are uninterrupted. The Bank monitors the current external and internal situation on an ongoing basis and makes decisions aimed to ensure the security and safety of all of its stakeholders, in particular its clients. The Bank takes active measures to adapt its functions to the changing environment as best as possible. Details of the measures undertaken and planned are included in the financial statements for 2021.

Legal basis: Article 17(1), (5) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 (MAR).